CMS Energy Corporation (CMS)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 103,000 | 227,000 | 164,000 | 452,000 | 32,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 136,000 |
| Receivables | US$ in thousands | 561,000 | 473,000 | 2,243,000 | 1,429,000 | 1,594,000 |
| Total current liabilities | US$ in thousands | 3,521,000 | 2,895,000 | 2,985,000 | 2,204,000 | 3,074,000 |
| Quick ratio | 0.19 | 0.24 | 0.81 | 0.85 | 0.57 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($103,000K
+ $—K
+ $561,000K)
÷ $3,521,000K
= 0.19
The quick ratio for CMS Energy Corporation has fluctuated over the past five years as follows: 0.57 in December 31, 2020, increasing to 0.85 by December 31, 2021, and then slightly dropping to 0.81 by December 31, 2022. However, there was a significant decline in the quick ratio to 0.24 on December 31, 2023, followed by a further decrease to 0.19 by December 31, 2024. These values indicate a decreasing trend in the company's ability to cover its short-term obligations with its most liquid assets. A quick ratio below 1 suggests a potential liquidity risk for the company, as its liquid assets may not be sufficient to cover its current liabilities. It would be advisable for CMS Energy Corporation to closely monitor and manage its liquidity position to ensure its financial health and stability.
Peer comparison
Dec 31, 2024